Improved infrastructure has made the property sector more attractive (Photo: Diep Duc Minh)

Real estate provider Savillis Vietnam forecast that M&A activities would continue to surge in the real estate sector given the favorable impression about future growth.

In a press release issued Wednesday, the firm cited an overall perception that the coming Trans-Pacific Partnership Agreement would support economic growth and boost FDI flows into Vietnam.

In addition, the newly-approved amended land law will allow foreign-invested enterprises to use their allocated land to build residential housing for sale. The regulation is expected to ensure transparency and offer equal opportunities to local and foreign investors, making Vietnam's real estate market more attractive to investors, it said.

Japanese and Korean investors, who have participated in the most of M&A activities in the last two years, are expected to maintain a strong presence in the field. There is also growing demand from Singaporean and Taiwanese investment in both residential and commercial office buildings, according to the release.

Many local property developers are eager unload stalled projects to ease their financial burdens, creating ideal opportunities for firms with sound financial capacities. Infrastructure improvements have also made the property sector more attractive, it said.

More than US$5.7 billion was disbursed in the first half of the year, a year-year increase of one percent, according to the Ministry of Planning and Investment. Of the fund, 10 percent was poured into the property sector, mainly through M&A activities.